Suppose that over a 30-year period Buskerville's price level increased from 72 to 146, while its real
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Question:
Suppose that over a 30-year period Buskerville's price level increased from 72 to 146, while its real GDP rose from $1.2 trillion to $2.3 trillion.
Instructions:Round your answers to 1 decimal place.Use simple (not compounded) growth calculations for the percentage change.
a. Did economic growth occur in Buskerville?
(Click to select)
No
Yes
If so, by what average yearly rate in percentage terms?
percent
b. Did Buskerville experience inflation?
(Click to select)
No
Yes
If so, by what average yearly rate in percentage terms?
percent
c. Which shifted rightward faster in Buskerville: its long-run aggregate supply curve (ASLR) or its aggregate demand curve (AD)?
(Click to select)
AD
AS
Expert Answer:
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